Companies will be rated according to an 鈥渆co-score鈥 based on 16 environmental indicators, including carbon emissions, water consumption, recyclability and biodiversity impact.
Brands with the lowest rating will be taxed up to 鈧5 euros (around $9) per product in 2025 and up to 鈧10 (around $18) by 2030. This tax cannot exceed 50 per cent of the product鈥檚 price.
Advertising from fast fashion brands, including on social media and through influencer partnerships, will also be banned, while companies will be required to inform customers of their products鈥 environmental impact.
Dr Rowena Maguire, director of the Centre for Justice at Queensland University of Technology, 鈥渟trongly supports鈥 the new legislation.
鈥淭hey鈥檙e the first in the world to take decisive action on fast fashion, and in particular recognise the strong relationship between advertising and the influence that has on consumption patterns,鈥 she says.